Step 2: If desired, you can select the box for Current Store Only to only display the rules for the store you are currently logged into.

Step 3: Type in a name for your rule.

Step 4: Enter the retail price in the Tax Free Ceiling field to declare up to what dollar value your items will be sold without tax.

(E.g. $200: Everything below $200 will be sold with no tax. Set to $999,999 if you want to exempt full tax).

Step 5: Taxable Amount Deduction will deduct a particular amount from the retail price of the item before tax is calculated.

Example for Step 5:

Tax Free Ceiling = $200.00

Taxable Amount Deduction = $100.00

Item retail price= $250.00

Because the item retail price ($250.00) is above the ceiling ($200.00), you will only charge tax based on the difference of the Item retail price and the Taxable Amount Deduction. Which in this case would be $150.00 and calculated as: Item retail price ($250.00) – Taxable Amount Deduction ($100.00) = $150.00. Let’s say this is applied to Tax1 which in this example is 12%, then the 12% tax will only be applied to the $150.00 which = to $18.00 for this particular example.

Step 6: Select which tax to apply the rule to in this field. (to apply it to more than one type of tax, you must create a second rule for an additional tax)

Step 7: Build a query for which applicable products or selected group of customers (See: Building a query for more details).